Abia, Bayelsa tackle commission over 13% derivation funds

Oil producing communities are up in arms against the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) over the commission’s rejection of the proposed oil communities’ fund.

The reason for the impending face-off between the oil producing communities and the RMAFC is the rejection by the commission for the payment of the oil communities’ funds to the host communities.

The first to disagree with the RMAFC are Abia and Bayelsa states which have joined other oil producing states to demand for the direct payment of 13 per cent derivation fund to the host communities.

Both states have already sent separate memoranda to the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) Engr. Elias Mbam insisting that the 13 per cent desiccation fund is a first line charge on the federation account and as such should be paid to the host oil producing communities.

Last week, the RMAFC had told the Senate at a public hearing that paying the host communities directly will result in the creation of a fourth tier of government as well as conflict with the provisions of the constitution.

The RMAFC had told the Senate that the oil-producing host communities were already provided for by the current 13 per cent derivation arrangements, the establishment of the Niger Delta Development Commission (NDDC) and the Ministry of Niger Delta.

The Abia group of oil producing communities had affirmed in their memorandum to the RMAFC that the 13 per cent derivation fund had existed before any revenue formula.

The amount due to the fund the group argued is constitutionally set aside before any Federation Accounts Allocation Committee (FAAC) meeting to be shared while the balance of 87 per cent is what FAAC is supposed to share.

Both Abia and Bayelsa groups noted in their separate memoranda that the “RMAFC has no right to send the 13 percent derivation fund through any state government account who is the third beneficiary of the Federation Account. It is also clear that 13 per cent Derivation Fund is not part of the consolidated fund of any tier of government.”

According to the Abia memorandum, “the fund is not part of state/local government Joint Account, the fund as provided in the 1999 constitution is on its own and should be treated as such.”

Oil producing communities in Bayelsa state in their memorandum urged the Federal Government to revert to the provisions of the 1982 Act in the disbursement f 13 per cent derivation fund.